sebi:EAD-2/AO/55/2012
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Facts / Headnote
Penalty imposed on the Noticee for violation of Regulation 7(1A) of the SAST Regulations
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 7
- Reg. 11
- Reg. 11(1)
- Reg. 201
- Reg. 35(2)
Parties
- Noticee (promoter of SFICL)
Holding
The Noticee violated Regulation 7(1A) of the SAST Regulations read with Regulation 35(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011 by failing to disclose the sale of 7,000 shares (2.86%) within two days, and is liable for a penalty of Rs. 50,000 under Section 15A(b) of the SEBI Act.
Full text
Page 2 of 9 2. SEBI has therefore, initiated adjudication proceedings under the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “Act”) against the Noticee to inquire and adjudge the alleged violations of the provisions of Regulation 7(1A) of the SAST Regulations. Appointment of Adjudicating Officer
Page 3 of 9 company, they cannot be alleged to have violated the Regulations 7(1A) of the SAST Regulations. That the shareholding of the Noticee in SFICL prior to the sale of said 7000 shares was only 3.26% of the equity share capital of the Company (i.e., 8000 shares), which is much lower than the threshold limit prescribed for applicability of regulation 11(1) of the SAST Regulations, therefore Regulation 7(1A) of the SAST regulations is not applicable. Further, that pursuant to the execution of Share Purchase Agreement dated December 21, 2009 between Vijay Krishnaji Sawant Sheela Vijay Sawant, etc. and Essar Capital Finance Private Limited and consequent Public Announcement under SAST Regulations in December 2009, the present promoters/ management came into management and control of FLFL and therefore they have not acted deliberately in defiance of law. Consideration of Issues, Evidence and Findings
Page 4 of 9 7. Before proceeding, I would like to refer to the relevant provision of the SAST Regulations which reads as under:
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Source: SecMarx — sebi:EAD-2/AO/55/2012. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.